Bitcoin Surrenders $60K as AI Tech Rout Triggers $2.5B Flush
Over $2.5 billion in crypto leverage was wiped out as a global tech stock sell-off dragged Bitcoin down 13% to $60k, proving the asset class remains tethered to Nasdaq volatility.
The “decoupling” thesis died on the operating table this morning. Bitcoin collapsed 13% to $60,300, acting less like digital gold and more like a levered proxy for the Nasdaq as a global technology stock rout spilled into digital assets.
Liquidity Evaporates
The damage is absolute. Data from CoinGlass confirms over $2.5 billion in leverage was wiped out in 24 hours, the most violent flush since the FTX collapse. Long positions accounted for 85% of the carnage.
The trigger wasn’t crypto-native. As Amazon and Big Tech majors slid on fears of ballooning AI capital expenditures, the risk-off contagion was instant. Bitcoin, which had held the $68,000 line for weeks, cratered through support, dragging Ethereum down 13% to ~$1,800.
The currency has broken a support level… giving a negative signal for the long term trading range. There is no support in the price chart and further decline is indicated. Investtech Technical Analysis
Institutional Pain
The crash has inflicted massive paper losses on corporate treasuries. MicroStrategy, the largest corporate holder of Bitcoin, is reeling from a reported $12.4 billion loss as the spot price tumbled below their cost basis. This psychological blow to the “infinite bid” narrative is likely forcing risk management desks to pause fresh capital deployment.
ETF flows mirrored the panic. Ethereum funds saw over $80 million in outflows yesterday, led by Fidelity ($55.7M) and BlackRock ($8.5M). Institutional allocators are not buying the dip. They are de-risking.
The Macro Trump Card Fails
Critically, this sell-off occurred despite a highly favorable regulatory backdrop. The SEC's recent dismissal of charges against Coinbase and the new administration's pro-crypto stance provided zero insulation against macro headwinds. The market has signaled that while regulatory clarity is necessary for long-term growth, it is insufficient to counter a liquidity crisis in the broader tech sector.
